Greenfish Fund Purchases Another Large Medical Debt Portfolio

PHILADELPHIA—Greenfish Fund II, LP, a leading buyer of healthcare receivables, announced today that it successfully completed the acquisition of another portfolio of accounts receivable from a large non-profit hospital system. The cumulative face value of accounts purchased since the inception of the first Greenfish fund in early 2008 now exceeds $950 million. Greenfish expects to surpass the important $1 billion milestone by the end of 2009.

Commenting on the purchase, Greenfish Fund II ‘s  Managing  Director, Eric Raymond, said, “Hospitals are facing severe margin contraction as a result of declining reimbursement levels and increasing self-pay and insurance-related bad debt. Recently enacted Medicare and Medicaid audits create enormous administrative cost and threaten even to rescind past reimbursement. In purchasing old receivables, which have typically already been written-off, Greenfish provides hospitals with much-needed immediate cash for an otherwise dormant asset.  A meaningful trend we are seeing is that hospitals are now willing to sell accounts receivable much earlier in the cycle than in the past.”

About Greenfish Fund II, LP
Greenfish and its predecessors have been active buyers of healthcare-related receivables since 2006. Capital deployed to purchase accounts has grown by double digits every year and is expected to increase again—by 100% or more—in 2010.